Raise Taxes For New Jersey’s Richest, Save $1B For Working Families: Study

Are you a blue-collar worker upset about rising taxes in New Jersey? Maybe you’re not the one who needs to tighten your belt, a new study says.

On Tuesday, nonprofit advocacy group New Jersey Policy Perspective (NJPP) released a report that suggested if the state raised its income tax rates on its wealthiest households, it could raise more than $1 billion a year to help working families.

The NJPP report proposes adding four brackets to the state’s income tax and increasing rates on the state’s wealthiest five percent of households. The proposal is modeled on reforms put in place by California in 2012.

View the full report here.

According to the NJPP:

“Today, the most well-off New Jerseyans hold a greater share of the state’s income than they have in nearly a century, thanks to decades of unequal economic growth, creating an off-balance economy in which many middle- and lower-income New Jerseyans face barriers to economic opportunity. In fact, New Jersey’s top 5 percent of households now have average incomes that are 15.6 times larger than the bottom 20 percent of households, ranking 7th in the country for income inequality. Recent state tax policy changes have exacerbated this trend, making it harder for New Jersey to foster the kind of investments that expand the middle class and help narrow that gap.”

• See related article: Donald Trump Plans To Ditch Tax Break That Saves NJ Residents Thousands
• See related article: New Jersey Towns With The Highest Tax Bills In 2017

NJPP senior policy analyst Sheila Reynertson conceded that the proposal alone will not solve the state’s fiscal crisis, but emphasized that it’s a substantial-yet-sensible step in the right direction.

“Those at the very top, who have greatly prospered in the past decade, have a responsibility to pay their fair share and ensure our state and our society has a strong foundation for the future,” Reynertson said.

• See related article: Meet New Jersey's 6 Billionaires In 2017
• See related article: New Jersey CEOs Named Among 'Most Overpaid' In America

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Photo: U.S. Dept. of Labor